NSW Liberal Leader Barry O'Farrell and Shadow Minister for Finance Mike Baird today called on Morris Iemma and Kevin Rudd to deny a secret plan to increase the GST.

“A tax review discussion paper released by IPART reveals Morris Iemma’s hopes to have an inexperienced treasurer in a Federal Labor Government with whom to collaborate to increase the GST,” Mr O’Farrell said.

“Morris Iemma and Kevin Rudd must deny this plan to raise the GST,” he said.

“Morris Iemma wants a GST increase to cover for his failures in health, infrastructure, transport and community services.

“The IPART paper opens the door for the GST increase and a Kevin Rudd Labor Government would seal the deal.

“Federal Labor candidate Belinda Neal has already publicly said a Rudd Government would change GST distribution which will lead to a GST increase,” Mr O’Farrell said.

On 24 October, Belinda Neal said:

‘Wayne Swan has already given that commitment to say we will review the GST formula in government.’

“The issues paper describes a NSW tax base that is too narrow, examines the efficiency of the GST and looks at Federal-State tax arrangements,” Mr Baird said.

“In comparing the Australian tax system against international regimes the report notes:

‘Sharing tax bases including personal income, corporate income and goods and services is much more common in other federations.’[1]

“The report also spends considerable time coveting the breadth and administrative efficiency of the GST.

“It is an open invitation for Morris Iemma and Michael Costa to get a GST increase and NSW residents need a promise this will not happen.

“A Federal Labor Government together with wall to wall state Labor Governments would mean no checks and balances remain in the way of a GST increase.

“Michael Costa had the opportunity to deny the plan in a newspaper report today but failed to do so, the NSW Liberal/Nationals call on him, Morris Iemma and Kevin Rudd to come clean.

“Failure to deny a Labor plan to increase the GST will mean NSW families will be paying even more tax while Ministers like Reba Meagher, John Watkins and Michael Costa mismanage service delivery,” Mr Baird said.

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